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Join Date: Feb 2006
Location: Maryland
Posts: 22,290
Quote:
Originally posted by Wayne at Pelican Parts
We're renting right now, paying $2950 a month. Several things went have gone wrong with this house in the past four months - the owner has taken care of it all. The house sold (to him) in August for 880,000. To service that type of loan, on a 30-yr fixed, we'd be looking at $5490/mon to service $880K in debt. Add the 1.1% property tax to that number, and you get an additional $806/mo, for a total of $6296/mo. Add in insurance, and you're probably in the $6500/mo range.

Combine that with a declining market for property values, and also add in the recent problems that the owner had to pay with the house.

Before any tax considerations, I figure we're saving close to $3500 a month by renting this house, over if we had purchased it. That's $42,000 a year. You can buy a few Porsches with that...

-Wayne

Be sure to print this post out and put a copy in your will for your kids since you won't be leaving them a house using this logic. I'm sure they'll appreciate that you had more cash flow at the time.
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Old 02-27-2007, 01:41 PM
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